Loan growth has outpaced deposit growth every year since 2022 -- a steadily narrowing liquidity buffer, with a distinct dip-and-recovery cycle in business lending specifically
The US commercial banking sector's loan-to-deposit ratio has risen every year since 2022: 62.8% in June 2022, climbing steadily to 71.8% by June 2026. Deposits grew 6.6% over the period while loans grew 21.9% -- loan growth has consistently outpaced deposit growth, steadily narrowing the sector's liquidity buffer. Commercial and industrial lending followed a different, more cyclical path: a genuine contraction from $2,761.7bn (June 2024) to $2,680.1bn (June 2025), followed by an 8.0% recovery to $2,894.3bn by June 2026. The aggregate loan book's steady climb was masking this separate dip-and-recovery cycle in business lending specifically.
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